Updated over 5 years ago on . Most recent reply
Chattanooga STR market
An area I have been looking into for an STR is in chattanooga, tn considering the 10% growth rate year after year for the last 3 years as well as the overall economy growing. I recently found a house in a good area for 300k with current tennants leased out through June 2121 at $1700 a month. Seeing the comparable houses in the area the nightly average is about $120-150 per night on Airbnb. I'm just wondering if this is a good investment considering the ever changing STR regulations in city's. For some reason if the STR route didn't work out I would still be able to cash flow about $190 a month which I know is a bad COC return but as an exit strategy I could up rents to 2k a month since the property next door is renting for that with the same exact layout and wait a year because appreation is rising there as well and sell it. In your opinion is this a good idea or bad based on the current market? Thanks
Most Popular Reply
Hey Sean, I live in Chatt and yes the market here is growing year after year. Do you mind sharing the location that the house you found is in? Depending on the location a 300k home I assume is a 4/3 or a 4/2 and should bring in the 2k a month you're looking at as an "exit" strategy. I am not sure what the STR regulations are in Chatt currently but if your getting comparable rates in the area it may be a good buy.
I see your from CA so if your strictly looking into STR and in the TN area, you should also looking into Gatlinburg or pigeon forge area cabins. They have a high nightly rate as far as STR in that area.